AP Micro Economics Test Corrections

Which of the following statements about the price elasticity of demand is true?

As more close substitutes become available, demand tends to be more price elastic.

Which of the following describes a factor of production that is not fully scarce and that can be used simultaneously in the production of more than one good?

Basic knowledge that enhances the organization of all manufacturing assembly lines

Which of the following is associated with a command economy?

Public ownership of the means of production

The demand curve for a normal good slopes down for which of the following reasons? An increase in the price of the good induces consumers to purchase substitute products. An increase in the price of the goods reduces consumers' purchasing power. An increase in the price of the good increases consumers' utility from consuming that good.

I and II only

Which of the following statements describes an economy confronting scarcity?

If more of one good is produced, less of another good must be produced.

If the increase in the price of one good decreases the demand for another, then the two goods are

complementary goods